Advice on When Negotiating with Dealers and New/Demo Car Pricing

I'm based in NSW and I've been reviewing the latest drive-away prices for three specific vehicles during the current end-of-financial-year (EOFY) sales, primarily sourced from Carsales and some dealership listings. Below are the best price I could find:

  • Hyundai Kona N Line 2.0 - $38,500 Drive away (Official website pricing | MLP - $36,500 + on road cost $4,200 = $40,700 Drive away)
  • Mazda CX-3 G20 GT SP - $35,200 Drive away (Official website pricing | MLP - $35,300 + on road cost $4,300 = $39,600 Drive away)
  • Kia Seltos Sport+ - $38,500 Drive away (Official website pricing | MLP - $36,400 + on road cost $4,000 = $40,400 Drive away)

Based on this info would I be able to get further discounts from the current drive away prices or are these already fairly low? Could some one whos recently purchased or have experience/insights shed some light?

Comments

  • +1

    $4,000+ for “ORC”… jeezus. I would negotiate some of that out.

  • +4

    Do your best then contact a car buying broker to see if they can buy what you want at a better price.
    https://www.google.com/search?hl=en&q=car%20buying%20broker

    • -1

      I doubt it

      These are loss-leaders

      There wouldnt be much stock, nor much choice.

      Just a great deal to lure you in for something you really want

      Like the colour and model you are after or paying more for all the extras you thought were included

      Hence the amswer to OPs question is NO!

      You will likely end up being convinced to pay MUCH MORE!

      So if you are happy with the price and what is available then GRAB IT!

      • Is that from personal experience?

        My experience is totally different. I find what I want and specify full details to the broker. The broker comes up with the price for precisely what is specified. There is no BS, attempts to sell accessories or changed models. PRECISELY what I specify.

  • +1

    N Line, GT, Sports+ yet do any of them actually have any go fast mechanical bits? Or is a rear spoiler and alloy wheels the definition of these trim lines still?

    • They’re for when you want to look like you’re going fast in traffic, without the added inconvenience of actual performance.

      Personally I prefer it the other way around. A car that looks like a Camry, but will easily gap a Golf GTI.

      • tbh we are choosing these variants over the based model because of stuff like keyless start, leather seats (partial now - coz they are cost cutting), general looks and finish.

        • +1

          Even the partial leather is likely just plastic that looks like leather.

  • You can try a car buying service.

    I like this guy - https://www.carsauce.com/buy

    He reviewed his own service which came back glowing (as your might expect) but it gives you a really good overview of the process - https://www.youtube.com/watch?v=-JV9YOXJGBQ

    You could put it all three makes and see what comes back.

    • +1

      I'm already trying motorscout. What's the additional benefits of carsauce since it's powered by mototscout anyway?

      • A guy that makes interesting and engaging reviews gets a kick back.

        Other than that, no difference.

  • It all depends. If theyve got stock the want move, theyll likely discount. If youre ordering a special colour or option unlikely to get a lot of discount.

    Its a game. Sometimes theyll try to make you think youre getting a good discount to buy but will have a lot of extra fat in the RRP. Other times they will press that they've got the lowest price around and cant do any better but will 'reluctantly' offer you floor mats and an air freshener or other trinkets.

  • 12 days later have you actually spoken to dealers and tried your luck first?

    The main point is to narrow down to 1 model, and go from there. Negotiating, while also saying "oh I'm also looking at this other brand", won't get you any where.

    • I've spoken to multiple nearby dealers and they all start negotiating from their website drive away price and not from what I found on carsales referencing another dealer. When I give them the cheaper drive away price they just say best I can do is try to get close. I'm trying to actual beat that price. When I call the dealers with the cheapest drive away prices all say it's already cheapest on the market and there's no margin for them, prices advertised are already lowest with EOFY discounts applied.

      • +1

        If a dealer has a car advertised lower than the manufacturers advertised price, then it's a price-point car, designed to get people in the door or to fk with other yards. You then won't find cheaper than that price.

        The thing is you can't be just calling and going "what's your best price". That doesn't work, you need to show commitment - I'll buy that model, in that colour, with those extras, if you can do it for XX price. Sign an offer and commit to it if they can do it.

        Talk is cheap

        • I did show commitment and I said if they can start negotiations from the cheaper prices and beat that slightly I'd be happy to buy over the phone. Most will still tell me the website driveway price and ask me to come in in person. But I do get your point that I should focus on one car. I've been seeing which of the 3 i can get the biggest discount since we have equal preference.

          • +1

            @iinot:

            I've been seeing which of the 3 i can get the biggest discount since we have equal preference.

            Lol seriously? You're buying a car, not a discount. They're not all going to be the same, even down to servicing cost differences.

            • @spackbace: they are clearly buying an appliance, not a 'car'
              .

              • +1

                @Nugs: This is a 2nd car for the partner and she just cares about it being a new small suv, decent looking, and decent finishes. Landed with these 3 options and she doesn't care but I want to get more car for $ e.g. knowing Mazda might not budge but Kia/Hyundai will, I'd rather pay the same price for a slightly roomier SUV hence why I'm asking for advice.

      • +3

        IMO you need to be physically there ready to sign to actually negotiate.

        They aren't going to be played off against each other over the phone. They are smarter than that.

        • +1

          Yup, every dealer would have dealt with at least one OP each day, hence why they're not talking price over the phone.

      • +1

        Would a dealer really try to negotiate over the phone with any enthusiasm?

        I'd have thought they'd view phone calls as tyre kickers and reluctant to expend much time or energy with them.

        My thinking is to engage with them face to face and convince them that the car they have is absolutely the one you want.

        Then you explain that you were thinking $x was a reasonable price because …makeupwhateverstoryyouwant

        And right when he thinks he's really got you on the hook, ask him to throw in the extras such as mats, tinting, seat overs, dash mats, steering wheel covers, boot protectors, rain shields, sun roof etc etc

        Then tell him to put it all in writing

        Then: back Thursday, just need to ask the wife.

    • As a side question to the resident car expert, is there room to move on the used car dealer sticker prices up until EOFY?

      Is EOFY a thing for used, or is the old story of the pressure to meet EOFY targets only really on the new cars?

      • More car yards are switching to fixed price sales, or advertising cheap to get people in the door

        As with my reply above, if it's the cheapest on the market for the year/condition/kms, then the likelihood of negotiation room is minimal

        • @spackbace looking at the cheapest drive away on the market vs the MLP+ORC I shared does it look like there's room? Not sure what's the standard way of calculating.

          • @iinot: There's only room if a dealer accepts a discount

            I assume your "best prices" are 2025, brand new stock? Not 2024 plated, or demo stock?

            For your prices quoted, Carsales lists the Seltos as being demo models

            • @spackbace: Yes sir, brand new and some are dealer demo with low kms between 50km -1000km, the dealers I call quote their demo vehicles with the brand new prices since they say its practically brand new.

              • +2

                @iinot: Demo isn't brand new.

                Demo's get bonuses on them to bring the price down. If you're negotiating to get a new car for demo price, you won't. You're also paying less due to having less rego, and maybe having kms on them

                • @spackbace: In all honesty I always go for a demo/dealer used as first preference but they always start their pricing at new car price to negotiate for those. But thank you, good to know they get bonuses on them so I might have more leverage.

                  • @iinot:

                    so I might have more leverage.

                    Omg lol no, you don't. You're already looking at the cheapest advertised cars out there

                    Why don't you just go buy 1 of the cheapest advertised? Clearly no one wants to negotiate down to that level, so why not just buy those ones?

                    Mazda CX-3 G20 GT SP - $35,200 Drive away

                    There you go, cheapest one, buy that

                    • @spackbace: Sure I can go buy one of the cheapest…but I just wanted some advice if prices listed on carsales can be negotiated further or if dealers would beat them based on everyones experience…

                      e.g. Mazda CX-3 G20 GT SP - $35,200 Drive away - "I just bought the same car and was able to negotiate an extra $500-1k lower than that" or "Looking at the cheapest prices you might be able to pull off another $1k since the cheapest price is only 5% lower than the MLP based on the current market conditions"

                      Anyway you seem quite frustrated which is fair, but I still thank you for your general advice earlier.

                      • @iinot: They are in the industry and like to push the reasons why consumers must accept sticker prices. Any objections or questioning why that should be very predictably get him going.

                        • @RichB: I don't push accepting sticker prices, I push accepting the lowest advertised sticker prices

                          There's a difference…

        • cheapest on the market for the year/condition/kms

          The car I'm looking at is that, but it's also been listed for over a month and hasn't had a price reduction. I guessing what you are saying is reductions would be in response to other vehicle pricing rather than a response to time on the lot. Some cars I have watched have dropped significantly and if it is on drive.com.au it will show you the changes.

          However, none of the cheaper, but more KM, offerings seem to be moving either so I'll just have to see how I go.

        • Do you think more brands will move to fixed price models? My understanding was that it hasn't worked out very well for Mercedes. Fine when you're at the top and are in demand but if you have a line up of EVs no one wants then it's an albatros.

  • Kona is by far the newest car here and the only logical option.

    If you particularly like Mazda, don't fall for the scam of the CX-3. It's a $40k Mazda 2. Get a Mazda 3 with the 2.5L.

    • The partner wants a small suv because she wants to be a bit higher off the ground. I suggested the Mazda 3 but she didn't consider. Kona is definitely the preference and I'd hope to get it close to the Mazda price if possible (Not likely but anything will be good).

      • The CX-3 is lower than EV hatchbacks. It's also only 3cm taller than the Mazda 2 it's based on. It's a marketing trick to extract money from people like your partner.

      • +1

        You might be able to get into a CX30 G20 touring for around the $40k mark… These are a 'half' size up from the cx3 and less SUV looking than the cx5

  • -6

    Do not buy brand new car never ever.
    If you can afford buy a decent secondhand German brand car.

  • +1

    Check out the Subaru Crosstrek. Had heaps of tech and smooth driving at that price point

    • Good suggestion

  • Which one is red?

  • When I did work for a new car importer the markup from landed cost of the vehicle including all shipping and taxes and dealer retail (inc gst) was 100 percent or more.

    Some of the markup is justifiable, such as transport from docks to retailer. But a lot is just fat, greed and inefficiency in the Australian light vehicle supply chain. So, there should be plenty of fat that can be trimmed from the retail price.

    The reason the Australian car industry gets away with this is that laws were put in place to protect Australian vehicle Manfacturing making parallel imports or private imports of new vehicles or imports of new near vehicles impossible or price uncompetitive. These laws were never revoked when vehicle Manfacturing in Australia stopped at the expense of the current Australian vehicle buyer.

    • What laws were those? Tariffs?

  • Sorry can't help with the advice you seek but I would love to know what you end up buying, price and what you and your wife think about it and if you are happy with your decision. Just started looking myself so keen to get any real feedback on models in the small/mid SUV category.

    One thing i will say is I always play hard ball with sales people to try and get the best deal but you must be willing to actually walk away. Even if you still want to buy that particular car, walk away and they may contact you with a better deal or go to another sales yard in a nearby suburb and see if they will do better.

    Good Luck. :-)

    • But how do you know that the price you're aiming for is realistically achievable?

      • +1

        Well it's an unreasonable offer if they don't call back

    • +1

      Ended up buying a Kona base model petrol.

      For 33k RRP is 35k.

      Just through broker.

      Good features for the basic. But missing small things like stero avg and no auto boot opener. Need to open the hatch by hand.

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